Selling Your Home Yourself? Make Sure Your Buyer Has a Financing Path.
The FSBO seller’s real problem isn’t finding an interested person — it’s knowing whether that person can realistically progress toward closing.
FSBO Buyer Financing Toolkit
Prequalification vs. preapproval
A prequalification is often based on unverified, self-reported information, while a preapproval typically involves the lender verifying income, assets, and credit. Knowing which one your buyer has affects how much confidence to place in it.
How a financed buyer typically moves toward closing
After an accepted offer, a financed buyer usually moves through application, documentation, appraisal, and underwriting before a final closing disclosure and closing. Each step is a point where timing or terms could shift.
What to look for in a preapproval letter
A useful preapproval letter generally names the loan amount, loan program, and date issued, and ideally indicates that income, assets, and credit have been reviewed — not just a conversation.
How appraisals can affect financed transactions
Most financed purchases require an appraisal. If the appraisal comes in below the contract price, financing amounts or negotiated terms may need to be revisited.
Common financing issues that can delay or disrupt closing
New debt, employment changes, or documentation gaps discovered during underwriting can all affect timing. Encouraging your buyer to stay in close contact with their loan officer reduces surprises.
FHA, VA, and conventional financing from a seller's perspective
Each loan type has its own property and process considerations. A licensed loan officer can help your buyer understand which applies and what it may mean for your transaction timeline.
Seller concessions and buyer financing
Depending on the buyer's loan program, negotiated seller concessions toward closing costs may be possible within program-specific limits. This is worth discussing directly with the buyer's loan officer.
What happens if buyer financing falls through?
Financing can fall through for reasons ranging from a low appraisal to a change in the buyer’s employment or credit. Having a financing contingency appropriately addressed in your purchase agreement, and encouraging early, transparent communication between your buyer and their loan officer, are the best ways to reduce this risk. This is general education, not legal advice for your specific contract.